Central banks must help firms develop climate-related stress tests to improve financial firms’ understanding of their exposure to climate risk, International Monetary Fund managing director, Kristalina Georgieva, has said.

The fund will be helping push forward efforts to create the stress tests, notably though its own assessments of countries’ financial sectors and economies, she wrote in a December 2 blog post.

“Careful calibration of stress-testing for climate change will be needed, because